A revised economic forecast for Kansas projects the state will collect $407.8 million more than previously expected in the upcoming fiscal year, adding to a budget surplus that could be used to eliminate the 6.5% state sales tax on food. Gov. Laura Kelly, a Democrat seeking reelection this year, has made the total elimination of the sales tax on food a cornerstone of her campaign. Republicans have favored an approach that would phase out the tax over several years, as long as revenue numbers remain strong, while eying other potential tax cuts and criticizing the governor for vetoing a tax bundle three years ago. The new revenue estimate, which is tempered for inflation and includes all of the legislation already signed by the governor, shows the state would have a $2.7 billion surplus entering July and a $3.1 billion surplus in another 12 months. The elimination of the sales tax on food would reduce revenues by an estimated $402.5 million.
Source: The Lawrence Times
